TOKYO (Standard&Poor's CreditWire) March 19, 2001--Standard and Poor's today assigned its double-'Bpi' rating based on public information, or 'pi' rating, to Aozora Bank Ltd. The rating reflects the higher business risk of Aozora (formerly Nippon Credit Bank Ltd.) compared with that of other major banks in Japan, impairment of its franchise due to temporary nationalization, an expected slow recovery in profitability, and uncertainty surrounding the bank's funding. At the same time, Aozora's asset quality has improved following its sale of nonperforming loans and arrangements to provide additional protection against asset deterioration. The bank's capitalization is adequate. Aozora's franchise deteriorated when the bank was nationalized in December 1998. The bank will find it difficult to recover its client base
